Irresponsible lending by looted? Advice really needed

Tixy

Nat85 wrote: »

The money was mainly spent on paying other debt..... It is useful to know it would impact on my credit rating as I assumed that but didn't know. My credit rating currently is fine as I manage my money well. A series of redundancies and silly loans from years ago have contributed to the current situation. I think it is hard to face up to but we need to now. Thank you or posts. Int rate not changed no, I think it is over19.9 apr but on 17k that adds up.... Thank you for help. Oh and as for selling.... Not much left to sell!!!!

It will only impact on your ability to get credit if you are financially associated on your credit files - basically joint mortgage, loans, overdraft etc.

Nat85

Thank you I will do the statement of affairs.

Nat85

Joint mortgage and loan on house. So yep, will effect me too!

Nat85

Do u do an soa just on your own individual debt, or if u r a couple, in my case married do u include all debt? Eg full mortgage amount or half?

Tixy

For the purposes of people offering you advice etc I would suggest a household one with all costs and income. Depending on what your next decision is with the creditors sometimes its sensible to send them a joint one, sometimes an individual one.

mymoney12

i would sit down with your husband put all the cards on the tabel. and come to a solution of selling house cutting costs where you can . get some advice from cab and go from there your both married your in this together so do a income outgoing list . its not the time to be thinking of your credit rating or anything. you will come through this it will take time . so start now. good luck

mymoney12

oh and consentrate on loans secured to your house not your credit cards.

notafan

There's no point chastising her it doesn't help the situation.

I think the OP likely knows some of the spending was irresponsible, but hindsight is a wonderful thing!

If its been a dual income household which suddenly drops to a single one its sometimes easier said then done to instantly spend according to the new income.

Yes mistakes happen but well done on acknowledging you've got some work to do.

You need a look at your budget - work out what the essential stuff is and make a real effort to get any extra into paying off the debt.

As a short term fix I would imagine if he's been creditworthy enough to get 17k and you've been making the payments then he might well be able to jig some stuff around. Try and move some stuff to 0% cards and keep at the highest rated stuff in the meantime. In all likelihood your still in for a long haul but the more you clear the less the interest and the more you pay off.

Have a look at snowball/avalanche debt repayment calculators which are fantastic in making you aware how to pay the least interest, how long it will take to get rid of and will clearly show you what you need to be paying.

People have got into sticker situations and come out the other side.

If your having trouble with the repayments then you need to take advice from somewhere like cccs. Don't take on any other borrowing and deal with it as quickly as you can.

In regards to responsible lending you'll probably find its somewhat of a 6 of one and half a dozen of the other situation. It'll probably cause you more hassle going down that road and i think you'll be far better off spending time taking really good advice, making realistic budgets and working out your plan.

Good Luck

Nat85

Thank you again for replies. On going through it all night we are in a tough situation. As previously I had tried to help with 0% etc we actually owe 47000 on cards and overdrafts plus the loan on house. The Cccs website advises dmp but I think we would both need to do this and as I can afford my cards I can't see my lenders freezing interest etc. If input in just my husbands info with me paying mortgage etc they recommend bankruptcy. I tell u what, I am just as responsible as I should have realised sooner the situation.

ILW

You appear to own a house, if it has any equity, I would sell up, pay off the debts, buy or rent a smaller place and be more careful in the future